national budget Flashcards
(11 cards)
What is the national budget?
How the government allocates its revenue to national, local and provincial governments for spending on services.
What are the main allocations of the national budget for the national government?
- South African police service (enforce laws)
- Law courts (laws are followed)
- Universities (support research)
What are the main allocations of the national budget for provinces?
- Schools (make sure they have resources and staff)
- Hospitals (equipment and staff)
- Social services (support children, elderly and disabled)
What are the main allocations of the national budget for local municipalities?
- Water (clean and safe water)
- Housing (local facilities)
- Waste removal
What is a social grant?
An amount of money the government gives to the poor/old people.
Who decides how much money goes into the national budget?
Minister of finance - Enoch Godongwana.
What is a direct tax?
Tax paid directly to the government.
Examples include income tax and business tax.
What is an indirect tax?
Taxes paid indirectly to the government.
Examples include VAT, sin tax (excise duty), customs duty, import tax, municipal tax, fuel tax, and transport tax.
How does the government spend its money?
- Pay debt
- Provincial government
- Emergency fund (Local government)
Why are government expenditure and the national budget important?
- National government
- Spending on education
- People gain skills
- People start businesses
- Businesses create jobs
- Employed people pay taxes
- Government collects taxes
What is the influence of the national budget?
- Social grants
- Free education for the poor
- Free primary healthcare for the poor
- Free water and electricity for the poor